“There's Really No Limit To What We Can Do,” Says US Fed Chairman Jerome Powell

In a recent interview with CBS News, the US Federal Reserve Chairman Jerome Powell said the “unprecedented” support from Congress may not be enough and both the Fed and Congress have to do more.

Last week, we reported that another $3 trillion coronavirus relief package has been passed by the House Democrats.

Coronavirus continues to affect the US as so far, there have been more than 1.5 million COVID-19 cases in the US and 90,980 people have lost their lives to it. Also, this past week, the Labor Department reported a total of over 35 million Americans had lost their jobs so far.

We're not out of ammunition by a long shot.

Fed not out of ammunition, Not by a long shot

Powell also warned of the “risk of longer-run damage to the economy” — the data for the quarter ending June will be “very, very bad,” he said. He, however, maintained that the road to recovery can happen “relatively soon”,

“It may take a while (…) It could stretch through the end of next year. We really don't know.” But “the economy will take some time to gather momentum.”

But the good news is they have the tools to limit the effects of the coronavirus by providing support to households and businesses. He said,

“There is a lot more we can do. We're not out of ammunition by a long shot. No, there's, there's really no limit to what we can do with these lending programs that we have.”

Since the coronavirus hit the markets, the Fed has been flooding the system with money. According to Powell, “As a central bank, we have the ability to create money digitally.”

Although by law, the Fed can only lend money that must be paid back, during the ongoing crisis they have been simply firing up their money printer and “increasing” the money supply. Macro investor Jones of Tudor Investment Corp called this,

“an unprecedented expansion of every form of money, unlike anything the developed world has ever seen.”

As for the mounting debt, it’s not the time to “prioritize that concern.”

Bitcoin is the perfect hedge against Fed’s printing

In complete contrast to fiat currency, that is either getting eroded by the “unbeatable dollar” or the central banks around the world continue to print more. Jean-Marie Mognetti, CEO of CoinShares said,

“Bitcoin, a digital currency whose supply is programmatically defined to reduce until it reaches its maximum supply, would seem to be the perfect hedge for any institutional investor portfolio.”

And that’s the ongoing crisis is the time for bitcoin to shine. Already, the halving last week cut down miners’ reward into half. An event that occurs every four years periodically slows down the pace at which new bitcoins are created.

And since the central banks around the world started dispensing their enormous stimulus measures, the world's leading cryptocurrency has been only gaining more support as an inflation hedge.

Bitcoin has also been one of the best-performing assets this year, up 31.58% YTD while the S&P 500 Index dropped 11%. CEO of Panxora Gavin Smith said,

“While traditional markets grow uncertain, we can expect more investors to use Bitcoin as an inflation hedge and to protect their assets against currency devaluation.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

China’s Largest Mining Chip Maker, SMIC, Gains Regulator’s Approval On $2.8B IPO

One of China’s biggest semiconductor manufacturer, SMIC, announces plans to raise a $2.8 billion public sale IPO on the Sci-Tech Board of the...

Bitcoin Flash Crashes to $8,600 with BitMEX Shenanigans at Play Again

Bitcoin doing bitcoin things! Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low. https://twitter.com/100trillionUSD/status/1267835341987340288 Yesterday, Bitcoin jumped as high as...

AVA Labs Integrates Chainlink’s Decentralized Oracles to Improve DeFi Dapps Development

AVA blockchain, becomes the latest platform to add Chainlink, a decentralized oracle system to its platform. The integration of Chainlink to the Dapp blockchain...

Binance Korea to Improve KYC/AML Framework With Coinfirm's Compliance Solution

Binance South Korea unveiled a unique partnership with Blockchain analytics firm, Coinfirm that will help Binance remain compliant with the strict AML framework...

2nd Largest BTC Mining Pool, Poolin, Collabs With BlockFi, To Boost Crypto Lending Service

Poolin and BlockFi have formed a partnership as the latter aims to extend loans to the mining pool. Bitcoin (BTC) and mining equipment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today